Taco Bell Calera (Birmingham MSA) - OFFERING MEMORANDUM - CALERA, AL

 
Taco Bell Calera (Birmingham MSA) - OFFERING MEMORANDUM - CALERA, AL
Taco Bell Calera
(Birmingham MSA)
CALERA, AL

OFFERING MEMORANDUM
Taco Bell Calera (Birmingham MSA) - OFFERING MEMORANDUM - CALERA, AL
Taco Bell Calera (Birmingham MSA)
                                                 CALERA, AL

                          CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is
intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made
available to any other person or entity without the written consent of Marcus & Millichap. This Marketing
Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to
establish only a preliminary level of interest in the subject property. The information contained herein is not a
substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and
makes no warranty or representation, with respect to the income or expenses for the subject property, the future
projected financial performance of the property, the size and square footage of the property and improvements,
the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal
regulations, the physical condition of the improvements thereon, or the financial condition or business prospects
of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The
information contained in this Marketing Brochure has been obtained from sources we believe to be reliable;
however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor
has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or
representation whatsoever regarding the accuracy or completeness of the information provided. All potential
buyers must take appropriate measures to verify all of the information set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS
                               & MILLICHAP AGENT FOR MORE DETAILS.
Taco Bell Calera (Birmingham MSA) - OFFERING MEMORANDUM - CALERA, AL
Taco Bell Calera (Birmingham MSA)
                                                     CALERA, AL

                                       NET LEASED DISCLAIMER

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable.
However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap
conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or
representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and
completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute
for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies
any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not
represent the current or future performance of this property. The value of a net leased property to you depends on
factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of
any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors
must request and carefully review all legal and financial documents related to the property and tenant. While the
tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success.
Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be
set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area.
Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail
to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market,
economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible
for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any
long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or
abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant
considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services
and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or
purchase of this net leased property.
Taco Bell Calera (Birmingham MSA) - OFFERING MEMORANDUM - CALERA, AL
Taco Bell Calera (Birmingham MSA)

            TABLE OF CONTENTS

Section 1              PRICING AND FINANCIAL ANALYSIS

Section 2                      PROPERTY DESCRIPTION

Section 3                     DEMOGRAPHIC ANALYSIS
PRICING AND FINANCIAL ANALYSIS

Taco Bell Calera (Birmingham
                        MSA)
                        CALERA, AL
Taco Bell Calera (Birmingham MSA)
CALERA, AL                                                                                                                          PRICING AND FINANCIAL ANALYSIS

FINANCIAL OVERVIEW
        Location                                                                                  Annualized Operating Data
        121 Supercenter Drive                                                                     Rent Increases                                         Annual      Monthly
        Calera, AL 35040
                                                                                                  Based on October 4 2013 Rent Increase               $107,907.84     $8,992.32
                                                                                                  October 4 2018 Increase                             $118,698.60     $9,891.55
        Price                                                              $1,600,000             Base Rent ($43.16/SF)                                                $107,908
        Down Payment                                                30% / $480,000                Base Rent Growth Rate
                                                                                                       Year 5                                                           10.00%
        Rentable Square Feet                                                      2,500
                                                                                                  Net Operating Income                                                 $107,908
        Price/SF                                                               $640.00            Net Cash Flow After Debt Service                            22.48% / $107,908
        CAP Rate                                                                 6.74%            Total Return                                                22.48% / $107,908

        Year Built                                                                 2003           NOI is based on a rent increase with a commencement date
        Lot Size                                                        .65 +/- Acres             of October 4, 2013

        Type of Ownership                                                  Fee Simple

        Tenant Summary
        Tenant Trade Name                                                    Taco Bell
        Ownership                                                                Private
        Tenant                                             Tacala LLC Franchisee
        Lease Guarantor                                     Franchisee Guarantee
        Lease Type                                                  Triple Net (NNN)

        Roof and Structure                                     Tenant Responsible
        Lease Term                                                            20 Years
        Lease Commencement                                                10/04/2003
        Rent Commencement                                                 10/04/2013
        Lease Expiration Date                                             10/03/2023
        Term Remaining on                                                   10+ Years
        Increases                                               10% Every 5 Years
        Options                                  Three (3) Five (5) Year Options

        Financing
        FIRST TRUST DEED
        Loan Amount                                                      $1,120,000
        Loan Type                                                     Proposed New
        Amortization                                                          20 Years
        Program                                                      15-20 Year Am
        Loan to Value                                                               70%

        Loan information is time sensitive and subject to change.
        Contact your local Marcus & Millichap Capital Corporation
        representative.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of                                       1
Atlanta, Inc. © 2013 Marcus & Millichap U0700011
Taco Bell Calera (Birmingham MSA)
CALERA, AL                                                                                                                          PRICING AND FINANCIAL ANALYSIS

TENANT OVERVIEW
  Property Name                                                                                                                                       Taco Bell Calera (Birmingham MSA)
  Property Address                                                                                                                                                121 Supercenter Drive
                                                                                                                                                                        Calera, AL 35040
  Property Type                                                                                                                                        Net Leased Restaurant Fast Food
  Rentable Square Feet                                                                                                                                                              2,500

  Tenant Trade Name                                                                                                                                                             Taco Bell
  Ownership                                                                                                                                                                       Private
  Tenant                                                                                                                                                          Tacala LLC Franchisee
  Lease Guarantor                                                                                                                                                  Franchisee Guarantee
                                                                                                                                                                    500 Million in Capital
                                                                                                                                                                   Franchisee Guarantee

  Lease Commencement Date                                                                                                                                                     10/04/2003
  Rent Commencement Date                                                                                                                                                      10/04/2013
  Lease Expiration Date                                                                                                                                                       10/03/2023
  Term Remaining on Lease                                                                                                                                                      10+ Years
  Lease Type                                                                                                                                                             Triple Net (NNN)
  Roof and Structure                                                                                                                                                 Tenant Responsible
  Lease Term                                                                                                                                                                    20 Years
  Increases                                                                                                                                                           10% every 5 years
                                                                                                                                                                      10% Every 5 Years

  Options to Renew                                                                                                                                         Three (3) Five (5) Year Options

  No. of Locations                                                                                                                                                              225 Units
  Headquartered                                                                                                                                                    Birmingham Alabama
  Web Site                                                                                                                                                              www.tacala.com
  Franchisee Profile:
      Years in the Business                                                                                                                                                            23
      Other Concepts Owned                                                                                                                                                          Sonic

  This Taco Bell is operated by Tacala LLC. Tacala is one of the the largest operators of Taco Bells in the country. At the end of 2012, Altamont
  Capital Partners, a private equity firm based in the San Francisco Bay Area, acquired majority ownership in Tacala. Altamont selected Tacala as
  their first investment in the restaurant industry based on the strong company leadership which has remained in place, as well as the company’s
  proven track record. Altamont has $500 million of capital under management and is focused on investing in middle market businesses where it can
  partner with leading management teams to help them reach their full potential. Their principals have significant experience building business
  success stories across a range of industries, including financial services, consumer/retail, industrials, healthcare and business services.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of                                                  2
Atlanta, Inc. © 2013 Marcus & Millichap U0700011
PROPERTY DESCRIPTION

Taco Bell Calera (Birmingham
                        MSA)
                        CALERA, AL
Taco Bell Calera (Birmingham MSA)
CALERA, AL                                                                                                                                            PROPERTY DESCRIPTION

INVESTMENT OVERVIEW

Investment Highlights

■ Operated by TACALA

■ 10% Rent bumps every five years

■ 10+ Years remaining on initial term

■ NNN

■ Outparcel to Walmart Super Center

■ Close to major interstate

■ Fastest growing County in the State of Alabama

■ Strong sales growth year over year

Marcus and Millichap is pleased to present this NNN free standing Taco Bell operated by Tacala LLC. Tacala is one of
the largest operators of Taco Bells in the country, primarily focused in the southeast and Missouri. The remaining base
term of the lease expires on October 3rd, 2023. There are three, five-year options to extend the lease, which includes
10% fixed increases every 5 years.

This is a "Bold Choice" design which is Taco Bell's latest design concept. Situated on an outparcel to Walmart Super
center which draws traffic from the surrounding areas and is adjacent to I-65. There is a new Publix center within 1/4 of
a mile of subject property. Located in Shelby County which continues to be one of the fastest growing counties in the
country.

YUM Brands, the franchisor, is the world's largest restaurant company with over 35,000 stores in 110 countries and with
more than $12.6 billion in worldwide revenues in 2011. Taco Bell is the nation's fifth largest QSR and dominates the
Mexican segment. Taco Bell generated sales of $6.8 Billion in 2011.

This offering is a great opportunity for an investor to acquire a management free asset with an attractive yield from one
of the largest and most experienced operators in the country.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of                             4
Atlanta, Inc. © 2013 Marcus & Millichap U0700011
Taco Bell Calera (Birmingham MSA)
CALERA, AL                                                                                                                                            PROPERTY DESCRIPTION

PROPERTY SUMMARY
          The Offering
          Property                                                                                                                            Taco Bell Calera (Birmingham MSA)
          Property Address                                                                                                                                121 Supercenter Drive
                                                                                                                                                               Calera, AL 35040
          Assessor's Parcel Number                                                                                                                         282-040-001-012.005
          Zoning                                                                                                                                                    Commercial

          Site Description
          Year Built                                                                                                                                                      2003
          Rentable Square Feet                                                                                                                                            2,500
          Lot Size                                                                                                                                                 .65 +/- Acres
          Type of Ownership                                                                                                                                          Fee Simple

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of                                        5
Atlanta, Inc. © 2013 Marcus & Millichap U0700011
Taco Bell Calera (Birmingham MSA)
CALERA, AL                                                                                                                                            PROPERTY DESCRIPTION

PROPERTY PHOTOS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of                             6
Atlanta, Inc. © 2013 Marcus & Millichap U0700011
Taco Bell Calera (Birmingham MSA)
CALERA, AL                                                                                                                                            PROPERTY DESCRIPTION

AREA MAPS

  Local Map                                                                                                                                                   Regional Map

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of                                  7
Atlanta, Inc. © 2013 Marcus & Millichap U0700011
Taco Bell Calera (Birmingham MSA)
CALERA, AL                                                                                                                                            PROPERTY DESCRIPTION

SITE PLAN

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of                             8
Atlanta, Inc. © 2013 Marcus & Millichap U0700011
Taco Bell Calera (Birmingham MSA)
CALERA, AL                                                                                                                                            PROPERTY DESCRIPTION

AERIAL PHOTO

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of                             9
Atlanta, Inc. © 2013 Marcus & Millichap U0700011
DEMOGRAPHIC ANALYSIS

Taco Bell Calera (Birmingham
                        MSA)
                        CALERA, AL
Taco Bell Calera (Birmingham MSA)
CALERA, AL                                                                                                                                               DEMOGRAPHIC ANALYSIS

DEMOGRAPHIC REPORT
                                                                                                                                               1 Mile        3 Miles    5 Miles

          2000 Population                                                                                                                         415         4,724       9,751
          2010 Population                                                                                                                         598        10,507      18,662
          2012 Population                                                                                                                         620        10,738      19,189
          2017 Population                                                                                                                         685        12,743      22,290

          2000 Households                                                                                                                         164         1,782       3,618
          2010 Households                                                                                                                         239         4,154       7,169
          2012 Households                                                                                                                         247         4,233       7,352
          2017 Households                                                                                                                         279         5,130       8,691

          2012 Average Household Size                                                                                                             2.59         2.62        2.62

          2012 Daytime Population                                                                                                                 550         3,191       6,289

          2000 Median Housing Value                                                                                                         $97,822         $94,161    $102,704

          2000 Owner Occupied Housing Units                                                                                                  78.66%         77.62%      75.99%
          2000 Renter Occupied Housing Units                                                                                                 11.66%         14.39%      15.62%
          2000 Vacant                                                                                                                        10.76%          9.55%       9.00%

          2012 Owner Occupied Housing Units                                                                                                  72.16%         78.61%      76.69%
          2012 Renter Occupied Housing Units                                                                                                 20.65%         14.37%      15.83%
          2012 Vacant                                                                                                                         7.20%          7.01%       7.47%

          2017 Owner Occupied Housing Units                                                                                                  71.20%         78.71%      76.89%
          2017 Renter Occupied Housing Units                                                                                                 21.42%         14.74%      15.97%
          2017 Vacant                                                                                                                         7.38%          6.56%       7.14%

          $ 0 - $14,999                                                                                                                        5.0%           6.3%        7.8%
          $ 15,000 - $24,999                                                                                                                   6.6%           7.5%        8.0%
          $ 25,000 - $34,999                                                                                                                  10.6%          10.0%       10.6%
          $ 35,000 - $49,999                                                                                                                  11.3%          11.9%       11.6%
          $ 50,000 - $74,999                                                                                                                  19.1%          21.5%       21.3%
          $ 75,000 - $99,999                                                                                                                  16.5%          18.0%       16.4%
          $100,000 - $124,999                                                                                                                 15.3%          12.6%       12.5%
          $125,000 - $149,999                                                                                                                  4.8%           5.6%        5.4%
          $150,000 - $199,999                                                                                                                  4.5%           3.7%        3.7%
          $200,000 - $249,999                                                                                                                  2.5%           1.2%        1.0%
          $250,000 +                                                                                                                           3.6%           1.8%        1.8%

          2012 Median Household Income                                                                                                      $71,610         $66,124     $63,674
          2012 Per Capita Income                                                                                                            $37,193         $31,564     $29,630

          2012 Average Household Income                                                                                                     $93,509         $80,074     $77,229

          Demographic data © 2012 by Experian.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of                                       11
Atlanta, Inc. © 2013 Marcus & Millichap U0700011
Taco Bell Calera (Birmingham MSA)
CALERA, AL                                                                                                                                            DEMOGRAPHIC ANALYSIS

SUMMARY REPORT

Geography: 5 Miles
Population

In 2012, the population in your selected geography was 19,189 . The population has changed by 96.78% since 2000. It is estimated
that the population in your area will be 22,290 five years from now, which represents a change of 16.15% from the current year. The
current population is 48.9% male and 51.0% female. The median age of the population in your area is 34.0 , compare this to the U.S.
average which is 37. The population density in your area is 222.09 people per square mile.

Households
There are currently 7,352 households in your selected geography. The number of households has changed by 103.20% since 2000.
It is estimated that the number of households in your area will be 8,691 five years from now, which represents a change of 18.21%
from the current year. The average household size in your area is 2.62 persons.

Income
In 2012, the median household income for your selected geography is $63,674 , compare this to the U.S. average which is currently
$53,535. The median household income for your area has changed by 56.95% since 2000. It is estimated that the median household
income in your area will be $75,215 five years from now, which represents a change of 18.12% from the current year.

The current year per capita income in your area is $29,630 , compare this to the U.S. average, which is $28,888. The current year
average household income in your area is $77,229 , compare this to the U.S. average which is $75,373.

Race & Ethnicity
The current year racial makeup of your selected area is as follows: 76.59% White, 17.35% African American, 0.24% Native American
and 0.57% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.20% White, 12.65% African American, 0.96%
Native American and 5.01% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 6.61% of the current year
population in your selected area. Compare this to the U.S. average of 16.55%.

Housing
The median housing value in your area was $102,704 in 2000, compare this to the U.S. average of $110,781 for the same year. In
2000, there were 3,020 owner occupied housing units in your area and there were 621 renter occupied housing units in your area.
The median rent at the time was $349 .

Employment
In 2012, there are 6,289 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed
that 55.6% of employees are employed in white-collar occupations in this geography, and 44.3% are employed in blue-collar
occupations. In 2012, unemployment in this area is 3.50% . In 2000, the median time traveled to work was 24.2 minutes.

  Demographic data © 2012 by Experian.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of                            12
Atlanta, Inc. © 2013 Marcus & Millichap U0700011
Taco Bell Calera (Birmingham MSA)
CALERA, AL                                                                                                                                            DEMOGRAPHIC ANALYSIS

AVERAGE HOUSEHOLD INCOME

                  Demographic data © 2012 by Experian.

                                                                                                              Average income of all the people 15 years and older occupying a
                                                                                                              single housing unit.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of                                     13
Atlanta, Inc. © 2013 Marcus & Millichap U0700011
Taco Bell Calera (Birmingham MSA)
                                CALERA, AL

                          OFFERING MEMORANDUM

                                                                          Presented By:

                                                                     Nathan Gustavson
                                                                      Senior Associate
                                                                   San Francisco Office
                                                                License: CA: 01898316
                                                                    Tel: (415)625-2176
                                                                    Fax: (415)963-3010
                                               Nathan.Gustavson@marcusmillichap.com
                                             www.marcusmillichap.com/NathanGustavson

                                                                     Eddie Greenhalgh
                                                                                Broker
                                                               License: AL: 00008-8298
                                                                    Tel: (205)747-3700
                                                                    Fax: (205)747-3710

Offices Nationwide
www.MarcusMillichap.com
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